Calculating and interpreting the debt ratio a. Compute the debt ratio for each of the three companies.

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Calculating and interpreting the debt ratio

Expenses Total Assets Net Income $ 40,000 150,000 68,000 Total Llablitles $30,000 147,000 17,000 Company $22,000 $19,000


a. Compute the debt ratio for each of the three companies.
b. Which company has the most financial leverage?

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